Taiwan's Foxconn, the world's largest contract electronics manufacturer, reported a significant jump in revenue of 39.8 percent year-on-year in the second quarter of this year. These strong results exceeded market expectations, driven by growing and record demand for artificial intelligence products and technologies, despite the company expressing caution about global political and economic volatility.

Foxconn, which is the largest supplier of servers to Nvidia and the main assembler of Apple's iPhones, said in a statement on Sunday that its revenue for the quarter from April to June jumped to 2.513 trillion Taiwan dollars (equivalent to $78.71 billion).

This revenue was higher than the average estimate from the LSEG platform, which had forecast 2.372 trillion Taiwan dollars. The company attributed the strong performance to a significant surge in AI orders, driving robust growth in cloud and networking products, along with notable growth in smart consumer electronics, which includes smartphones.

On a monthly basis, revenue for June alone jumped 52.1 percent year-on-year to 821.8 billion Taiwan dollars, setting an unprecedented record for that month in the company's history.

Second-half outlook

Looking ahead, the company expects its operations to see continued growth on a quarterly and annual basis in the third quarter of this year, with the AI rack and equipment sector maintaining its strong upward trajectory.

Despite these positive indicators, management preferred to remain cautious; Foxconn (officially known as Hon Hai Precision Industry) noted that 'it remains necessary to monitor the effects of volatile and fluctuating global political and economic conditions,' without providing further details on the nature of these tensions.

It is worth noting that the company, which typically does not provide specific numerical forecasts, has seen its shares gain 4.3 percent since the beginning of this year, a rate lower than the overall performance of the Taiwanese market, whose index jumped 61.5 percent. The company's stock ended last Friday's trading up 0.6 percent ahead of the official announcement of these key financial data.